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Productivity Growth in Europe and the US: a Sectoral Study

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Author Info

  • Mary O’Mahony

    (University of Birmingham, NIESR London)

  • Ana Rincón-Aznar

    (NIESR London)

  • Catherine Robinson

Abstract

This paper describes recent trends in productivity growth in the EU and the US. By adopting a sectoral perspective, we achieve a deeper understanding of the compositional patterns of aggregate growth and shed light on the reasons why the EU productivity has lagged behind the US during the period 1995-2007. This may be of use for policy makers in order to design policies to close the gap. Whilst our findings indicate that performance in manufacturing sectors of many EU countries has been strong, we observe notable disadvantages in relation to productivity performance of key market service sectors. Restrictions in product and labour markets prevailing in many EU countries have been put forward as potential factors causing poor productivity; research shows that these can have particular harmful effects in services sectors given their large size and inter-linkages to other sector of the economy.

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Bibliographic Info

Article provided by Università di Perugia in its journal Review of Economics and Institutions.

Volume (Year): 1 (2010)
Issue (Month): 1 ()
Pages:

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Handle: RePEc:pia:review:v:1:y:2010:i:1:n:5

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Related research

Keywords: productivity; growth; service sectors;

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Cited by:
  1. Henk Kox & George van Leeuwen (Statistics Netherlands), 2012. "Dynamic market selection in EU business services," CPB Discussion Paper 210, CPB Netherlands Bureau for Economic Policy Analysis.
  2. Kox, Henk L.M. & Leeuwen, George van, 2011. "Measuring dynamic market selection by persistent scale inefficiencies - new methodology applied to EU business services," MPRA Paper 34986, University Library of Munich, Germany.
  3. Kox, Henk L.M. & van Leeuwen, George, 2013. "Market selection and scale inefficiency – A new methodology applied to EU business services," Structural Change and Economic Dynamics, Elsevier, vol. 25(C), pages 77-94.

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